CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Group Of MPs Calls For Reformed Taxation Of Contractors

Group Of MPs Calls For Reformed Taxation Of Contractors

by Robert Lee, Tax-News.com, London

09 March 2016


A cross-party group of UK Members of Parliament has written to Chancellor George Osborne to call for the improved tax treatment of flexible workers, or contractors.

According to trade association PRISM, there are 1.6m contractors in the UK who do not fit clearly into either of the Government's categories of worker, "employed," or "self-employed." PRISM sponsored the open letter to Osborne, signed by 55 MPs, which calls for a review of the tax system for contractors and the self-employed.

The letter explained: "We believe a well-run review will result in a more orderly market which sees the right workers get the right reliefs, greater tax compliance, and increased investment in jobs. The Office of Tax Simplification would be the natural authors of such a review."

The MPs added that Osborne should "use a strategic review to end the [current] sticking plaster approach, bring clarity to the most dynamic labor market in the world, and give all types of workers a fair deal and equal recognition."

Commenting on the letter, Crawford Temple, Chief Executive of PRISM, said: "It is only right that the tax system recognizes the way employment has evolved over the last few decades so everyone knows where they stand and can make informed decisions about where they work, how they are engaged, and how much tax they are going to have to pay. It is a win-win-win situation for the Government, employers, and workers."

Labour MP Helen Goodman, a signatory to the letter and a member of the Treasury Select Committee, remarked: "In our increasingly complex and flexible labor market, more and more people work in a way that is neither traditionally 'employed' nor 'self-employed', yet our tax system tries to shoehorn them into one or the other category. This denies them the security and advantages they may be entitled to for the convenience of the Government."

"It is in everyone's interests for the hodgepodge, ad hoc arrangements that have been built up to be reviewed, so that a productive and well-functioning system can collect the right amount of tax, as well as protecting workers' rights and privileges."

TAGS: compliance | tax | investment | business | tax compliance | United Kingdom | contractors | self-employment | tax reform | trade association | trade | Employment

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »